Cash flow is one of the most important reports to observe in case of a company.
Cashflow refers to the movement of money into and out of a company.
Any money received by the company is called inflow - inflow from sales, interest, etc.
Any money spent is called outflow - buying raw materials, marketing, hiring, etc.
A cash flow statement is a report of how a company receives and spends its money over a certain time period.
Cash flow is a money collected from client or customer by selling product or services.
From cash flow we can check the health of a company or organization.
For Example : if the company showing growth in profit then we check in cash flow that actual money or profit is come or not.
Let the company is selling its product, it sell 50,000$ worth product and profit margin is 50% then the profit is 25,000$ but the entire payment has not come in the company, the payment is pending from buyers from cashflow we can see this.